LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
'Supervision' obligations for an agent who leads a team mean:
- AOnly sharing commissions with team members according to their production, since compensation is the leader's main role
- BOnly signing the contracts that bring team members onto the agency's platform, with supervision left to the MGA
- Ensuring team members are licensed for what they do, follow compliance and are monitored; the leader may be responsible
- DNone, since each licensed agent is individually accountable to the regulator and a team leader has no additional duty of any kind
Correct answer: C) Ensuring team members are licensed for what they do, follow compliance and are monitored; the leader may be responsible
Supervisory responsibility is recognized by regulators and insurers.
Why the other options are wrong
- ASupervision goes far beyond sharing commissions.
- BSupervision goes far beyond signing contracts.
- DSupervisory responsibility exists.
Exam tip
Supervisors: licensing, procedures, monitoring, accountability.
Common mistake
Ignoring a team member's replacement ratio.
What this tests
CISRO competency component 2.2 — Integrate into practice the rules governing the activities of life insurance agents — which is weighted at 40% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 2
- A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- Assuris coverage applies to:
- OLHI's services are available to:
- Complaints about an agent's conduct (as opposed to an insurer's claim decision) should be directed to:
- The best summary of an agent's ethical obligations is to:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.